Deutsche upgrades HPCL, BPCL on cheap valuations

Deutsche Bank has upgraded Hindustan Petroleum Corp and Bharat Petroleum Corp to 'hold' from 'sell' on underperformance over the last three months and cheap price-to-book valuations.

"The stocks are now trading at close to their five-year lows on PBV," said the bank in a note on Tuesday.

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Deutsche reduced the target price for HPCL to Rs 225 and BPCL to Rs 450 from Rs 550 mainly on the assumption that under-recoveries will remain elevated due to high crude oil prices.

At 12:52 a.m, shares of HPCL were up 2.55 percent at Rs 251.55 and BPCL up3 percent at Rs 497.25.

Reuters